Occidental Petroleum (OXY) Shares Drop to 2.5-Year LowOccidental Petroleum (OXY) Shares Drop to 2.5-Year Low
Shares of Occidental Petroleum Corporation (OXY), the sixth-largest holding in Warren Buffett’s portfolio, have fallen to their lowest level since April 2022. According to Yahoo Finance, Buffett's Berkshire Hathaway increased its stake in Occidental Petroleum to nearly 30% this summer.
But could Buffett be wrong this time? As the chart shows, OXY shares have reached a 2.5-year low.
Meanwhile, analysts are lowering their price targets for OXY shares:
→ Citigroup cut its target from $65 to $62;
→ Wolfe Research reduced its target from $83 to $82;
→ Susquehanna lowered its target from $81 to $78.
However, technical analysis suggests some reasons for bullish optimism:
→ Drawing an upward channel based on the points indicated by arrows shows that the price is nearing the lower boundary of the channel, which may provide strong support and even lead to a bullish reversal.
→ The lower boundary is further reinforced by the psychological level of $50 per share.
→ The RSI indicator is at levels last seen during the panic of spring 2020, suggesting that Occidental Petroleum (OXY) shares may be oversold and undervalued.
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